• USD/JPY edged up on Monday, but gains were limited as investors stayed cautious due to a lack of clear market-moving catalysts.
• Bank of Japan Governor Kazuo Ueda warned that rising food prices could drive core inflation above the 2% target, signaling the central bank may continue with rate hikes.
• The remarks come as the BOJ weighs economic risks from higher U.S. tariffs and rising domestic inflation in deciding when to resume rate hikesl.
• Japan's core inflation rose to 3.5% in April, the fastest in over two years, driven by a 7% jump in food prices, boosting chances of another rate hike this year.
• At GMT 06:29, the dollar was up 0.21% to 143.13 against the Japanese yen.
• Immediate resistance is located at 144.63 (50%fib), any close above will push the pair towards 145.00(Psychological level).
• Support is seen at 142.45(38.2%fib) and break below could take the pair towards 140.80 (Lower BB ).
Recommendation: Good to sell around 143.30 with stop loss of 143.90 and target price of 142.50
